Indonesia’s House of Representatives (DPR) approved the 2027 State Budget bill into law on 29 September 2026, setting the government’s fiscal framework and main macroeconomic assumptions for next year.
State expenditure was approved at approximately IDR 4.100 trillion, or around USD 228 billion, while state revenue is targeted at around IDR 3.400 trillion. The figures represent increases of approximately 4% and 7%, respectively, compared with the government’s latest estimates for 2026.
The 2027 budget assumes economic growth of 6%, above the government’s expected growth rate for 2026. The growth assumption had previously been agreed between the government and the DPR’s Budget Committee as part of the budget deliberations.
Other macroeconomic assumptions include annual inflation of 2,5%, an average exchange rate of IDR 17.500 per USD, a 10-year government bond yield of 6,9%, and an Indonesian Crude Price assumption of USD 75 per barrel. Oil lifting is targeted at 612.500 barrels per day, while natural gas lifting is set at 954.000 barrels of oil equivalent per day.
The government has set the fiscal deficit at 2,4% of gross domestic product (GDP), below the current statutory ceiling of 3%. The deficit is narrower than the government’s latest projection of 2,85% of GDP for 2026.
Higher state revenue is expected to support the increased expenditure while keeping the deficit at the targeted level. The government has placed greater emphasis on tax and other state revenue collection as part of the 2027 fiscal framework. During earlier budget discussions, tax revenue was projected at around IDR 2.600 trillion, while total taxation revenue, including customs and excise, was targeted at approximately IDR 2.900 trillion.
The budget also continues funding for several of President Prabowo Subianto’s priority programmes. The government allocated approximately IDR 240 trillion for the Free Nutritious Meals programme in 2027, according to figures reported by Reuters.
The 6% growth target follows an earlier government range of 5,8% to 6,5% presented in May as part of the Macroeconomic Framework and Fiscal Policy Principles for 2027. The final budget sets the assumption at the lower half of that initial range.
The 2027 State Budget will serve as the government’s main fiscal framework for funding public programmes, infrastructure, social expenditure and other government priorities during the next fiscal year.